Zimmerman Lehman: Downsizing Your Development Staff During the Economic Downturn?

Penny-wise and pound-foolish? Absolutely! While Zimmerman Lehman understands nonprofits' interest in shoring up their programs in tough times, it is nothing short of tragic to deny money to development and marketing This is analogous to a for-profit company cutting its advertising budget in bad economic weather.

It is absolutely vital that nonprofits continue to raise funds from every appropriate source and to invest in marketing and public relations to give organizations the high profile that will ensure successful fundraising. While you might be able to save the program today, if you reduce fundraising staff it's a no-brainer that you will also reduce your income in the long run, hence putting more programs or your agency at risk.

We are sure many of our readers have noticed the dramatic shift in employment possibilities for fundraisers at all levels of experience. Four years ago, philanthropic journals and websites were chock-full of ads for development staff. Some nonprofits re-opened their searches because they had received so few decent resumes the first time around. It was a grand time to be a fundraiser looking for a job and not such a hot time to be a nonprofit looking for a fundraiser.

My, how things have changed. Development staff who were ardently courted a few years ago by a host of nonprofits are suddenly finding that they're not as desirable as they once were. New development positions aren't opening up, and fundraisers are staying put rather than testing the suddenly icy employment waters.

One might think this would be a godsend for nonprofit organizations, right? Simple supply and demand: if there are lots of folks looking for work and not that many positions available, then nonprofits should be in the driver's seat. What's odd, though, is that many nonprofits are failing to take advantage of this favorable market. Instead they are reducing the size of their development offices and focusing the lion's share of money on program, not infrastructure (including administration, fundraising and public relations).

We understand the difficult choices nonprofits are facing and by no means want to suggest it would be easy to cut services to those in need, but we do urge organizations to think strategically for the long haul when making these decisions.

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